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We analyze the growth and welfare effects of globalization in a dynamic Schumpeterian North-South product-cycle model … bargaining above a given minimum wage promotes mercantilist behavior of developed countries. -- globalization : product cycle …
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We embed a North-South trade model into an incomplete contracts setting where the production of heterogeneous firms can be geographically separated. When a Northern headquarter contracts with a Southern supplier instead of a Northern supplier, the presence of international incomplete contracts...
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